Reborn Coffee, Inc. (REBN) AI Stock Analysis

• Market Cap: $9.56M
• Dividend Yield: N/A
• Average Volume (3M): 76.44K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.58
• Revenue Growth: 21.10%
• EPS Growth: -18.56%
• Country: US
• Employees: 24
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): -0.68
• Shares Outstanding: 5,976,322
• 10 Day Avg. Volume: 54,951
• 30 Day Avg. Volume: 76,435
• PEG Ratio: 0.02
• Price to Book (P/B): 1.85
• Price to Sales (P/S): 0.81
• P/FCF Ratio: -1.05
• Enterprise Value/Market Cap: 1.74
• Enterprise Value/Revenue: 2.50
• Enterprise Value/Gross Profit: 4.52
• Enterprise Value/Ebitda: -1.54
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 44 Neutral
• Price Target: $1.50 ▼(-16.67% Downside)

The score is primarily held down by weak financial performance (losses, negative operating cash flow, and prior negative equity/leverage concerns). Technicals are mixed with only modest near-term strength against a longer-term downtrend, while valuation is constrained by a negative P/E. Corporate events add both material listing-risk pressure and some relief from compliance-focused equity actions.

Positive Factors

Balance sheet strengthening via equity raise

A $6.5M equity infusion materially improves liquidity and reported shareholders' equity, reducing near-term solvency pressure. This provides durable runway to execute growth initiatives, invest in DTC/subscription channels, and avoid immediate distress-driven asset sales or restructurings.

Reduction of derivative liabilities

Eliminating ~$1.3M in derivative liabilities and cancelling warrants reduces contingent claims, simplifies the cap table and lowers future dilution risk. This structural cleanup strengthens the balance sheet and improves transparency for long-term capital planning and investor confidence.

Diversified, recurring revenue model

Multiple channels (retail, DTC, subscriptions, partnerships, events) provide revenue diversification and recurring streams from subscriptions. This business mix supports steadier cash inflows, customer retention, and resilience to single-channel shocks, aiding sustainable growth execution.

Negative Factors

Negative equity and high leverage

Persistently negative shareholders' equity and elevated leverage indicate solvency risk and constrain strategic flexibility. These structural balance-sheet weaknesses can increase borrowing costs, limit access to capital, and force dilutive financing or operational cutbacks to restore solvency.

Negative operating cash flow

Ongoing negative operating cash flow shows the core business isn't generating sufficient cash to fund operations. Reliance on external financing for working capital is unsustainable long-term, raising execution risk if capital markets tighten or future raises are unavailable.

Weak profitability and margin pressure

Declining gross margins and persistent negative profitability reflect cost pressures or pricing constraints. Structural margin erosion undermines the ability to convert revenue into sustainable free cash flow, making long-term viability dependent on margin recovery or significant cost restructuring.

Reborn Coffee, Inc. Business Overview & Revenue Model

Company Description

Reborn Coffee, Inc. operates and franchises retail locations and kiosks that focus on serving specialty-roasted coffee in California. The company purchases, roasts, and sells coffee, tea and other beverages, and various food items. As of September 30, 2021, it operated 7 retail locations. Reborn Coffee, Inc. was founded in 2014 and is based in Brea, California.

How the Company Makes Money

Reborn Coffee generates revenue through multiple streams, including the sale of its coffee products in retail outlets, direct-to-consumer online sales, and subscriptions for regular coffee deliveries. The company also earns money through partnerships with cafes and restaurants that carry its brand, as well as through events and workshops that promote coffee education and tasting experiences. Key factors contributing to its earnings include the growing demand for premium and ethically sourced coffee, effective marketing strategies, and a loyal customer base that values sustainability.

Reborn Coffee, Inc. Financial Statement Overview

Summary

Reborn Coffee, Inc. faces significant financial challenges, with consistent losses and high leverage. While revenue is growing, profitability and cash flow generation remain problematic. The company needs to address its cost structure and leverage to improve financial stability.

Income Statement

Reborn Coffee, Inc. shows a consistent increase in revenue, with a TTM revenue growth rate of 1.49%. However, the company struggles with profitability, as indicated by negative net profit margins and EBIT margins. The gross profit margin has decreased from previous years, reflecting potential cost management issues.

Balance Sheet

The balance sheet reveals significant financial instability, with a negative stockholders' equity and a high debt-to-equity ratio in the TTM period. This indicates a high level of leverage and potential solvency risks. The return on equity is positive in the TTM period but is driven by negative equity, which is a concern.

Cash Flow

The cash flow statement shows improvement in free cash flow growth, with a 25.96% increase in the TTM period. However, operating cash flow remains negative, and the operating cash flow to net income ratio is unfavorable, indicating challenges in generating cash from operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.66M	5.93M	5.51M	3.24M	2.28M	793.09K
Gross Profit	3.69M	3.72M	3.62M	2.12M	-676.98K	-435.65K
EBITDA	-10.85M	-4.20M	-4.33M	-3.31M	-3.25M	-924.55K
Net Income	-12.76M	-4.81M	-4.73M	-3.55M	-3.44M	-1.07M
Balance Sheet
Total Assets	6.20M	7.79M	9.25M	8.46M	4.76M	1.98M
Cash, Cash Equivalents and Short-Term Investments	44.05K	158.22K	164.30K	3.02M	905.05K	128.57K
Total Debt	4.35M	3.85M	7.16M	3.85M	3.39M	2.59M
Total Liabilities	9.62M	5.19M	8.41M	4.17M	3.57M	2.73M
Stockholders Equity	-3.42M	2.60M	846.41K	4.29M	1.20M	-752.40K
Cash Flow
Free Cash Flow	-5.40M	-4.56M	-5.59M	-3.98M	-2.45M	-1.00M
Operating Cash Flow	-4.93M	-3.45M	-3.18M	-3.30M	-1.95M	-884.93K
Investing Cash Flow	-334.16K	-977.22K	-2.41M	-681.53K	-498.22K	-115.84K
Financing Cash Flow	5.01M	4.42M	2.74M	6.09M	3.22M	1.13M

Reborn Coffee, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.80
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For REBN, the sentiment is Negative. The current price of 1.8 is above the 20-day moving average (MA) of 1.55, above the 50-day MA of 1.64, and below the 200-day MA of 2.44, indicating a neutral trend. The MACD of -0.01 indicates Negative momentum. The RSI at 48.14 is Neutral, neither overbought nor oversold. The STOCH value of 45.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for REBN.

Reborn Coffee, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CHSN	62 Neutral	$84.19M	3.35	-1.73%	―	21.20%	―
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
FWRG	54 Neutral	$1.01B	206.35	0.83%	―	17.27%	-76.53%
BTBD	48 Neutral	$8.91M	-9.66	-11.53%	―	-4.16%	29.52%
GTIM	46 Neutral	$12.67M	11.92	3.85%	―	1.84%	12.10%
REBN	44 Neutral	$9.56M	-0.58	―	―	21.10%	-18.56%
FAT	41 Neutral	$8.09M	-0.03	―	760.71%	-5.26%	-44.78%

Reborn Coffee, Inc. Corporate Events

Reborn Coffee Regains Nasdaq Compliance Through Equity Actions

On December 31, 2025, Reborn Coffee, Inc. entered into a warrant exchange and termination agreement with Arena Investors, issuing 185,771 shares of common stock in exchange for cancelling warrants to purchase 337,765 shares, a move the company estimates eliminated approximately $1.3 million of derivative liability. Together with a previously reported October 20, 2025 securities subscription agreement under which accredited investor Charles Jeong invested $6.5 million for 1,192,661 shares, the unused $50 million equity line established on February 10, 2025, and an estimated net loss of $985,562 for the three months ended December 31, 2025, Reborn Coffee projects shareholders’ equity of about $3.4 million as of December 31, 2025 and believes it has regained compliance with Nasdaq’s stockholders’ equity listing requirement, while awaiting Nasdaq’s formal determination and acknowledging that ongoing non-compliance in future reporting periods could still result in delisting.

The most recent analyst rating on (REBN) stock is a Sell with a $1.50 price target. To see the full list of analyst forecasts on Reborn Coffee, Inc. stock, see the REBN Stock Forecast page.

Reborn Coffee Faces Nasdaq Delisting Notice

On December 2, 2025, Reborn Coffee, Inc. received a notification from Nasdaq regarding the delisting of its securities due to non-compliance with the equity rule requiring a minimum stockholders’ equity of $2,500,000. The company plans to appeal this decision to a Hearings Panel, which could delay the suspension and delisting process, although there is no assurance of a favorable outcome.

The most recent analyst rating on (REBN) stock is a Sell with a $2.00 price target. To see the full list of analyst forecasts on Reborn Coffee, Inc. stock, see the REBN Stock Forecast page.

Reborn Coffee Announces Unregistered Share Issuance

Reborn Coffee, Inc. has announced the issuance of October and November Shares, which have not been registered under the Securities Act. These shares are being issued in reliance on an exemption from registration requirements provided by Section 4(a)(2) of the Securities Act and Rule 506(b) of Regulation D. This move does not constitute an offer to sell or buy these securities in the United States without proper registration or applicable exemptions, and the shares will carry a legend indicating this restriction.

The most recent analyst rating on (REBN) stock is a Hold with a $1.50 price target. To see the full list of analyst forecasts on Reborn Coffee, Inc. stock, see the REBN Stock Forecast page.

Reborn Coffee Holds Annual Stockholders Meeting

On November 20, 2025, Reborn Coffee, Inc. held its annual meeting of stockholders for the fiscal year ended December 31, 2025. During the meeting, stockholders elected seven directors to the company’s Board and ratified the appointment of BCRG Group as the independent registered public accounting firm for the fiscal year. The proposal to adjourn the meeting was withdrawn as all necessary approvals were obtained.

The most recent analyst rating on (REBN) stock is a Sell with a $2.00 price target. To see the full list of analyst forecasts on Reborn Coffee, Inc. stock, see the REBN Stock Forecast page.